PA’s Responsible Franchise Practices Bill: Overview and Discussion
PA House Bill 1620 (Responsible Franchise Practices Bill), filed by former Quiznos franchise owner Representative Peter Daley, aims to protect franchisees from “fraudulent or unfair practices in the sale or operation of franchised businesses.” Among others, the provisions contained in the bill require franchisors to act in good faith and with the highest standard of due care. It also protects franchisees from significant changes in renewals, limits on transfers and restriction on legal avenues in regards to franchisor-franchisee disputes. We will advise you on the hearing and any further movement of the proposal.
Do you support the PA Responsible Practices Bill 1620?
Is this type of legislation good or bad for franchising?
Please share your opinion below and/or on each of the bill’s components linked to below.
PA House Bill 1620 Supporting Responsible Franchise Practices
On July 24, 2013, Pennsylvania State Rep. Peter Daley (D-49) – a former Quiznos franchisee – introduced Pa. House Bill 1620 designed help even the playing field in regards to franchisee-franchisor relations.
Pa. House Bill 1620 aims to protect franchisees from “fraudulent or unfair practices in the sale and operation of franchised businesses.” Among others, the provisions contained in the bill require franchisors to act in good faith and with the highest standards of due care. The language also protects franchisees from significant changes in renewals, limits on transfers and restrictions on legal avenues in regards to franchisor-franchisee disputes.
You may read and comment on each of the bill’s provisions at these links:
905. Good Faith & Fair Dealing
907. Due Care
908. Sourcing of Goods & Services
909. Encroachment
911. Illegal Provisions
912. Trade Associations & Discrimination
914. System Changes & Renewal Agreements
915. Renewal
916. Termination
917. Transfer of Franchise System
918. Remedies
919. Penalties
Further reading:
IFA letter opposing PA House Bill 1620
PA HB 1620 Franchise Practices Bill: CFA Chairman Keith Miller Testifies (Video)
The House Committee on Consumer Affairs is scheduled to hear this bill Tuesday, Nov. 19 at 9:30 a.m. in Room 140 of the Main Capitol Building.
Click here to write to the Pennsylvania House Committee on Consumer Affairs and ask for their support of HR 1620.
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TAGS: PA House Bill 1620, PA Responsible Franchise Practices Bill, Fair Franchising Legislation, Franchise laws, Pennsylvania State Rep. Peter Daley
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